Key Points
- Lucid stock is the most purchased stock by insiders in terms of dollars and shares, but its share price may not rise much in 2025.
- Tile Shop Holdings is another strong buy stock with better stock price growth prospects in 2025.
- Vestis could be acquired, taken over or taken private in 2025; otherwise, its share price could quadruple in the long term.
Insider activity in 2024 will be high and signals higher stock prices for most. The question is whether the leading insider purchases will be suitable for investors in 2025. This is a look at the top insider purchases tracked by InsiderTrades.com, ranking them by dollar value invested, number of shares purchased, number of insider purchases and volume. transactions.
Lucid Group is the most bought stock by insiders in 2024
Lucid Group (NASDAQ: LCID) was the most purchased stock by insiders in 2024, ranking first by dollar value invested and number of shares purchased. However, Lucid Group’s insider activity is limited to one investor: Saudi PIF. PIF owns about 60% of the company and increased its stake at the same time as the dilution to maintain balance. With a 60% stake, she is a major shareholder and board director with significant control and is poised to reap significant profits if Lucid’s stock price rises.
Many people want to know if Lucid’s stock price will rise in 2025. Based on forecasts for EV sales, competition and the path to profitability, the answer is likely to be now. The company has yet to make a profit and is not expected to make one this decade. The likely scenario is that Lucid, seeking industry partnerships, will either team up with another EV startup or continue to struggle. A major OEM could buy out Lucid, but even then the target is the technology, not the finished product or production line. Lucid’s advantages include battery and powertrain expertise that delivers longer range and more power than competitors.
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Institutions other than PIF will also buy shares in 2024. However, the balance of activity turned bearish in the fourth quarter and is likely to cap growth unchanged. Analyst support in 2024 is also questionable. Analysts have put the stock on hold and are forecasting it to rise about 35% to the consensus target, but the revision trend is negative and weighing on the market. Recent revisions show the stock to be quite overvalued at nearly $2.50 and will likely continue to move sideways within its established trading range.
Tileshop Small Cap Stock Insiders Most Active in 2024
Tileshop (NASDAQ: TTSH) insiders are the most active in 2024, ranking first by number of transactions. However, as with Lucid, the activity is focused on one individual rather than a corporate officer. Tileshop shares are being purchased by Fund 1 Investments, which now owns almost 20% of the issued shares. Together with insiders and retail investors for a total of four owners, they own more than 50% of the shares, making it one of the most closely held issues on Wall Street. Institutions, hedge funds and private equity firms, which own almost all other stocks, will also be buying in 2024 and supporting the price action.
Tileshop is experiencing a decline in business in 2024, but could return to growth in 2025. Easing financial constraints should expand economic activity, including the housing market, and stimulate demand for Tileshop products. Until then, this small-cap company is in a strong financial position with growing cash and assets, stable liabilities, low total leverage below 2x equity, and increasing equity.
Vestis Insiders Buy This Takeover Target
Vestis (NYSE: VSTS) was a single division of Aramark spun off in its 2023 IPO. Today, it is one of the few small uniform service companies competing in a rapidly consolidating environment. It competes with Cintas, which is about four times larger, and UniFirst, which is about the same size. Opportunities for this in 2025 include a merger or acquisition that could involve both large competitors and private equity. The company has already received several takeover bids, so a bidding war may begin.
Meanwhile, Vestis insiders are actively buying shares. It ranks first in the number of insider purchases, of which there are nine. Insiders include four directors, a CEO, a CFO and two executive vice presidents, as well as one major shareholder, Corvex Management. Corvex Management is a hedge fund that specializes in undervalued companies in need of change.
In terms of value, Vestis shares are not cheap compared to the broader market, trading at 20 times earnings. However, it represents value relative to UniFirst and greater value relative to Cintas’ 45x valuation. Assuming Vestis can capture cash flow and provide return on capital guidance for Unifirst and Cintas, its share price could rise by triple or quadruple figures over the next five to 10 years. That is, of course, unless it is captured or private.
Companies in this article:
| Company | Current price | Price change | Dividend yield | P/E ratio | Consensus rating | Consensus target price |
|---|---|---|---|---|---|---|
| vest (VSTS) | $16.39 | -0.5% | 0.85% | 102.88 | Hold | $16.91 |
| Tile shop (TTSH) | $6.95 | +0.3% | N/A | 86.63 | N/A | N/A |
| Lucid Group (LCID) | $2.46 | +1.2% | N/A | -1.81 | Hold | $3.16 |
Experience
Thomas Hughes has been a writer for InsiderTrades.com since 2019.
Areas of Specialization
Technical analysis, S&P 500; retail, consumer discretionary, consumer staples, dividends, high yield, small cap, technology, economic data, oil, cryptocurrencies
Education
Associate in Culinary Technology
Past experience
Market watcher, trader and investor of numerous websites. Founded Passive Market Intelligence LLC to provide market research analytics.